MARKETING AND FINANCIAL ANALYSIS OF NIKE

A
PROJECT REPORT
( A Report submitted in partial fulfilling of requirement
for the award of Bachelor OF BusinessManagagment)

SUMMITTED BY UNDER GUIDANCE OF

KISHAN KUMAR MR ANIL KUMAR

COLLEGE ID :7992 aast.professor

ROLL NO :11 international

BBM 3RD YEAR bussiness
SESSION :2021-24
Content
page no.

 Guide’s certificate i
 Declaration ii
 Executive sum mary iii
 Chapter 1: Introduction to the study iv
 1.1:Rationale
 1.2:Objective
 1.3:Hypothesis
 1.4:Scope
 Chapter2: Literature Review
 Chapter3: Methodology
 Chapter4: Analysis and Interpretation
 Chapter 5: Findings
 Chapter 6:Recommendations
 Appendices
 Annexures
 List of Graphs References ( APA) -
Documentary

 Date:…………….

CERTIFICATE

THIS IS CERTIFIED THAT WORK EMBODIES IN THIS PROJECT

ENTITLED ,” MARKETING AND BUSINESS ANALYSIS OF NIKE“
BEING SUMITTED BY KISHAN KUMAR IN PARTIAL
FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF
BACHELOR OF BUSINESS MANAGMENTS “TO PARLITUTRA
UNIVERSITY “
DURING THE ACADEMIC YEAR 2021-2024 IS A RECORD OF
BONAFIDE PIECE OF WORK , CARRIED OUT BY HIM/HER
UNDER MY SUPERVISION AND GUIDANCE , CIMAGE
PROFESSIONAL COLLEGE.

Prof.Neeraj Agarwal Prof. Megha Agarwal Prof. Anil Kumar

DIRECTOR PRINCIPLE Asst. Professor
 Acknowledgement

I would like to express my thanks to my teacher MR ANIL KUMAR .HE

deserve the utmost credit for the assignment’s outcome.

I would like to extend my special thanks to our principal who gave

me the golden opportunity to do this opportunity to do this

wonderful project I on the topic MARKETING MIX AND FINANACIAL

STRATEGY OF nike which also helped me in doing a lots of research

and I come to know about so many new things.

Secondly, I would also like to thank my parents and friends who

helped me a lot in finalizing this project within the limited time

frame

Lastly I like to thank all my supporters who have motivated me to

fulfil their project before the timeline.

KISHAN KUMAR

3RD YEAR

SESSION 2021-2024
 DECLEARATION

I, KISHAN KUMAR , hereby Declare that the bona -fide record of “ THE

PROJECT REPORT ON MARKETING AND FINANCIAL

ANALYSE OF NATIONAL INDIAN KNITTING INTERPRISE

B.B.M degree Program of CIMAGE COLLEGE Under the
guidance of Professor Anil , Coordinator of B.B.M (
INTERNATIONAL BUSINESS ) .

I also declare that the project has not formed the basis of
reward of any degree or any other similar title to any other
University

NAME KISHAN KUMAR

Place : PATNA

Date : 15.01.2024
DECLEARATION

I, kishan kumar , hereby Declare that the bona -fide record of “ ON

NATIONAL INDIAN
KNITTING ENTERPRISE(NIKE)B.B.M degree Program of
CIMAGE COLLEGE Under the guidance of Professor Anil ,
Coordinator of B.B.M ( INTERNATIONAL BUSINESS ) .

I also declare that the project has not formed the basis of
reward of any degree or any other similar title to any other
University.

Place : PATNA kishan kumar

Date : 15.01.2024 ID no - 7992

 EXECUTIVE SUMMARY

Executive Summary: Nike, Inc.

Nike, Inc. is a global leader in athletic footwear, apparel, equipment, and accessories.
Established in 1964 by Bill Bowerman and Phil Knight, the company has grown to become
one of the most recognized brands worldwide. Nike's mission is to bring inspiration and
innovation to every athlete in the world.

Key Highlights:

1. Market Leadership: Nike dominates the athletic footwear and apparel market, with a
strong presence in both performance and lifestyle segments. The company's iconic
swoosh logo is synonymous with quality, innovation, and athletic excellence.
2. Innovative Products: Nike is renowned for its innovative product development,
leveraging advanced technologies to enhance athletic performance and comfort. Key
innovations include Nike Air cushioning, Flyknit material, and Nike React foam.
3. Brand Power: Nike's brand is one of its most valuable assets, supported by high-
profile sponsorships, endorsements, and marketing campaigns featuring top athletes
and celebrities. The company's brand equity contributes significantly to its market
leadership and consumer loyalty.
4. Global Reach: With a strong presence in over 170 countries, Nike operates a vast
network of retail stores, online platforms, and distribution channels. The company's
global footprint enables it to reach diverse markets and demographics.
5. Digital Transformation: Nike has been investing heavily in digital innovation,
including e-commerce platforms, mobile apps, and personalized shopping
experiences. These efforts aim to enhance customer engagement, streamline
operations, and drive growth in the digital space.
6. Sustainability Initiatives: Recognizing the importance of environmental and social
responsibility, Nike has implemented various sustainability initiatives, such as
 reducing carbon emissions, minimizing waste, and promoting fair labor practices
throughout its supply chain.
7. Financial Performance: Nike has consistently delivered strong financial results, with
steady revenue growth and profitability. The company's disciplined approach to cost
management, strategic investments, and effective marketing strategies contribute to its
financial success.

Looking ahead, Nike continues to focus on innovation, digital transformation, and

sustainability as key drivers of future growth. By staying true to its mission and values, Nike
aims to inspire athletes and consumers worldwide while delivering sustainable long-term
value to its shareholders.

1. Market Leadership: Nike's dominance in the athletic footwear and apparel market is
sustained by its relentless pursuit of excellence in product design, quality, and
performance. The company continually pushes the boundaries of innovation to create
cutting-edge products that resonate with athletes and consumers alike. Its diverse
product portfolio caters to a wide range of sports and activities, including running,
basketball, soccer, and training. By staying attuned to consumer preferences and
market trends, Nike maintains its competitive edge and strengthens its market
leadership position.
2. Innovative Products: Nike's commitment to innovation is evident across its product
range. The company invests heavily in research and development to pioneer new
technologies and materials that enhance athletic performance, comfort, and style. For
example, Nike's Flyknit technology revolutionized shoe construction by creating
lightweight, form-fitting uppers with minimal waste. Similarly, advancements in
cushioning technologies like Nike Air and React foam provide athletes with superior
support and responsiveness. By continuously innovating and iterating on its product
offerings, Nike stays ahead of the curve and drives consumer excitement and loyalty.
3. Brand Power: Nike's brand is not only a symbol of athletic excellence but also a
cultural icon. The company's strategic partnerships with top athletes, teams, and
influencers amplify its brand presence and influence across various demographics and
geographies. Nike's marketing campaigns, including the iconic "Just Do It" slogan,
resonate with consumers by inspiring them to push their limits and pursue their
 dreams. Through its brand storytelling and emotional connections, Nike fosters a
sense of belonging and empowerment among its global community of athletes and
fans.
4. Global Reach: Nike's extensive global presence encompasses a network of retail
stores, online platforms, and wholesale partners spanning continents. The company
strategically tailors its product offerings and marketing initiatives to cater to diverse
regional preferences and cultures. Nike's localized approach enables it to penetrate
new markets effectively while deepening its engagement with existing customers.
Additionally, the company's digital platforms, such as the Nike App and SNKRS,
provide seamless shopping experiences and personalized services to consumers
worldwide, driving further growth and brand loyalty.
5. Digital Transformation: Nike's digital transformation initiatives are integral to its
long-term growth strategy. The company leverages data analytics, artificial
intelligence, and augmented reality to enhance customer experiences, optimize
inventory management, and drive operational efficiency. Nike's investment in digital
innovation extends beyond e-commerce to encompass digital marketing, social media
engagement, and community-building initiatives. By embracing emerging
technologies and digital trends, Nike stays ahead of evolving consumer behaviors and
preferences, positioning itself for sustained success in the digital age.
6. Sustainability Initiatives: Nike is committed to advancing sustainability throughout
its business operations and supply chain. The company has set ambitious targets to
reduce its environmental footprint, including carbon emissions, water usage, and
waste generation. Nike prioritizes sustainable materials sourcing, circular design
principles, and renewable energy adoption to minimize its environmental impact.
Furthermore, Nike promotes fair labor practices and social responsibility within its
supply chain, aiming to improve worker welfare and empower local communities. By
integrating sustainability into its core business practices, Nike demonstrates its
commitment to creating a more sustainable and equitable future for all stakeholders.
7. Financial Performance: Nike's strong financial performance is a testament to its
robust business model and strategic execution. The company consistently delivers
solid revenue growth, driven by strong demand for its innovative products and
expanding global footprint. Nike's disciplined cost management and operational
efficiencies bolster its profitability and cash flow generation, providing a solid
foundation for future investments and shareholder returns. Moreover, the company's
 strong balance sheet and prudent capital allocation strategies ensure financial
resilience and flexibility amid evolving market conditions. Overall, Nike's track
record of financial success underscores its position as a global industry leader and a
reliable investment choice for shareholders.

In summary, Nike's enduring success stems from its unwavering commitment to innovation,
brand strength, global expansion, digital transformation, sustainability, and financial
discipline. By staying true to its mission of inspiring athletes and promoting active lifestyles,
Nike continues to shape the future of sportswear and drive meaningful impact worldwide.
NIKE,INC.AGROWTH

COMPANY

GENERAL

NIKE, Inc. was incorporated in 1967 under the laws of the State of Oregon. As
used in this report, the terms “we,” “us,” “NIKE” and the “Company” refer to
NIKE, Inc. and itspredecessors, subsidiaries and affiliates, collectively.

industry profile

According to a market report, published Sheer Analytics and Insights, The

global athletic footwear market was valued at $127.3 billion in 2021 and it is
expected to reach $214.5 billion at a CAGR of 4.7% between 2022 and
2032. Athletic shoes are popular, especially among young people, and have been
adapted for the casual market. Athletic shoes are made for excellent performance
and are included in an athlete's gear along with apparel and other accessories.
Sports-specific qualities of cushioning, flexibility, stability, traction, and
durability are offered by athletic shoes. Impact force is reduced by cushioning.
The demand for athletic shoes is also being boosted by technology improvements,
the creation of new and inventive shoes, and growing awareness of how crucial
it is to wear the proper footwear to avoid injuries to the legs, muscles, and other
body parts. Hence, these factors are driving the market over the past few years.
Additionally, Urbanization is a crucial aspect that influences the consumer
lifestyle. It is anticipated that the market for sports footwear will grow in the
upcoming years due to the changing consumer lifestyle.

Growing rates of lifestyle-related diseases like obesity and diabetes, increased

participation in outdoor activities like cycling and running, growing awareness of
physical fitness, increasing interest among young people in sports like cricket,
football, tennis, and badminton, and rising demand for branded and high-
performance sports shoes are just a few of the key factors influencing the growth
of the global athletic footwear market. Moreover, to combat obesity exercises like
yoga, gym, and jogging target urban dwellers. Kids want to live healthy lives,
thus they frequently show interest in sports and other related events. Athletic
footwear is in increased demand in these nations as a result of people's growing
awareness of how sports and exercise may promote good health and reduce the
risk of chronic diseases like depression and cardiovascular disease.

Furthermore, this demand is anticipated to expand more in the future years as

customers' perceptions of their health improve. E-commerce has also streamlined
consumer purchasing by making it easier and more convenient. Online shopping
is more popular in industrialized nations like the United States and Japan than it
is in emerging nations like China and India. Shoes made to be worn while playing
sports are generally referred to as athletic footwear. Sports shoes are generally
made to be worn during physical activities like sports. Because they provide
flexibility, stability or motion control, traction on the road, torsional stability, and
other benefits, they are essential for athletes. Therefore, these rising factors are
expected to create more growth opportunities for the athletic footwear market
globally.One significant trend gaining traction in the athletic footwear sector is
the use of recycled materials in the production of shoes. To lower their carbon
footprint and achieve their organization's unique sustainability aims, athletic
footwear manufacturers are concentrating on employing recycled materials in
shoes. Over the forecast period of 2022 to 2032, it is also expected that casual
occasions, growing celebrity endorsement of high-end athletic shoes, rising
number of international sporting events and competitions, including the FIFA
World Cup, Olympic Games, and Super Bowl, recent advancements in athletic
footwear designs and aesthetics, and other key factors will drive market growth.

On our NIKE website,locatedinvestors.nike.com, we post the following filings as

soon as reasonably practicable after they are electronically filed with, or
furnished to, theUnited States Securities and Exchange Commission (the “SEC”):
our annual report on Form 10-K, our quarterly reports on Form 10-Q, our current
reports any amendments to those reports filed or furnished pursuant to Section
13(a) or 15(d) of the Securities and Exchange Act of 1934, as amended. Our
definitive ProxyStatements are also posted on our corporate website. All such
filings on our corporate website are available free of charge. Copies of these
filings are also available on the SEC's website (www.sec.gov). Also available on
our corporate website are the charters of the committees of our Board of
Directors, as well as our corporate governanceguidelines and code of ethics;
copies of any of these documents will be provided in print to any shareholder
who submits a request in writing to NIKE Investor Relations, OneBowerman
Drive, Beaverton, Oregon 97005-6453.Our principal business activity is the
design, development and worldwide marketing and selling of athletic footwear,
apparel, equipment, accessories and services. NIKE is the largest seller of athletic
footwear and apparel in the world. We sell our products directly to consumers
through NIKE-owned retail stores and digital platforms (which we refer to
collectively as our “NIKE Direct” operations) and to retail accounts and a mix of
independent distributors, licensees and sales representatives in virtually all
countries around the world. We also offer interactive consumer services and
experiences through our digital platforms. Virtually all of our products are
manufactured by independent contractors.Nearly all footwear and apparel
products are produced outside the United States, while equipment products are
produced both in the United States and abroad.
We focus our NIKE Brand product offerings in six key categories: Running, NIKE
Basketball, the Jordan Brand, Football (Soccer), Training and Sportswear (our
sports-inspired lifestyle products). We also market products designed for kids,
as well as for other athletic and recreational uses, such as American football,
baseball, cricket, golf, lacrosse,skateboarding, tennis, volleyball, walking,
wrestling and other outdoor activities. In June 2020, we announced that we will
align our product creation and category organizations around a new consumer
construct focused on Men’s, Women’s and Kids'. This approach is intended to
allow us to create product that better meets individual consumer
needs,including more specialization of our category approach, while re-aligning
and simplifying our business to accelerate our largest growth opportunities.

NIKE's athletic footwear products are designed primarily for specific athletic use,
although a large percentage of the products are worn for casual or leisure
purposes. We place considerable emphasis on innovation and high-quality
construction in the development and manufacturing of our products.
Sportswear, the Jordan Brand and Running are currently our top-selling
footwear categories, and we expect them to continue to lead in footwear sales.

We also sell sports apparel covering the above-mentioned categories, which

feature the same trademarks and are sold predominantly through the same
marketing and distribution channels as athletic footwear. Our sports apparel,
similar to our athletic footwear products, is designed primarily for athletic use,
although many of the products are worn for casual or leisure purposes, and
demonstrates our commitment to innovation and high-quality construction.
Sportswear, Training, Football (Soccer) and Running are currently our top-selling
apparel categories, and we expect them to continue to lead in apparel sales. We
often market footwear, apparel and accessories in “collections” of similar use or
by category. We also market apparel with licensed college and professional
team and league logos. We sell a line of performance equipment and accessories
under the NIKE Brand name, including bags, socks, sport balls, eyewear,
timepieces, digital devices, bats, gloves,protective equipment and other
equipment designed for sports activities. We also sell small amounts of various
plastic products to other manufacturers through our wholly-owned subsidiary,
NIKE IHM, Inc., doing business as Air Manufacturing Innovation.

Our Jordan Brand designs, distributes and licenses athletic and casual footwear,
apparel and accessories predominantly focused on basketball using the
Jumpman trademark.Sales and operating results for Jordan Brand products are
reported within the respective NIKE Brand geographic operating segments.Our
wholly-owned subsidiary brand, Converse, headquartered in Boston,
Massachusetts, designs, distributes and licenses casual sneakers, apparel and
accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron
and Jack Purcell trademarks. Operating results of the Converse brand are
reported on a stand-alone basis.In addition to the products we sell to our
wholesale customers and directly to consumers through our NIKE Direct
operations, we have also entered into license agreements that permit
unaffiliated parties to manufacture and sell, using NIKE-owned trademarks,
certain apparel, digital devices and applications and other equipment designed
for

sports activities.

We also offer interactive consumer services and experiences through our digital
platforms, including fitness and activity apps; sport, fitness and wellness
content; and digital services and features in retail stores that enhance the
consumer experience.

SALES AND MARKETING

We experience moderate fluctuations in aggregate sales volume during the year.

Historically, revenues in the first and fourth fiscal quarters have slightly
exceeded those in the second and third quarters. However, the mix of product
sales may vary considerably as a result of changes in seasonal and geographic
demand for particular types of footwear, apparel and equipment, as well as
other macroeconomic, strategic, operating and logistics-related factors, as
evidenced by the impact of the COVID-19 pandemic.Because NIKE is a consumer
products company, the relative popularity and availability of various sports and
fitness activities, as well as changing design trends, affect the demand for our
products. We must, therefore, respond to trends and shifts in consumer
preferences by adjusting the mix of existing product offerings, developing new
products, styles and categories and influencing sports and fitness preferences
through extensive marketing. Failure to respond in a timely and adequate
manner could have a material adverse effect on our sales and profitability. This
is a continuing risk. Refer to Item 1A. Risk Factors.

We report our NIKE Brand operations based on our internal geographic

organization. Each NIKE Brand geographic segment operates predominantly in
one industry: the design, development, marketing and selling of athletic
footwear, apparel and equipment. The Company's reportable operating
segments for the NIKE Brand are: North America; Europe, Middle East & Africa
(EMEA); Greater China; and Asia Pacific & Latin America (APLA), and include
results for the NIKE and Jordan brands. The Hurley brand results, prior to its
divestiture in fiscal 2020, were included in North America. Sales through our
NIKE Direct operations are managed within each geographic operating
segment.Converse is also a reportable operating segment and operates
predominately in one industry: the design, marketing, licensing and selling of
casual sneakers, apparel and accessories. Converse direct to consumer
operations, including digital commerce, are reported within the Converse
operating segment results.

UNITED STATES MARKET

For fiscal 2021, NIKE Brand and Converse sales in the United States accounted
for approximately 39% of total revenues, compared to 39% and 41% for fiscal
2020 and fiscal 2019, respectively. We sell our NIKE Brand, Jordan Brand and
Converse products to thousands of retail accounts in the United States, including
a mix of footwear stores, sporting goods stores, athletic specialty stores,
department stores, skate, tennis and golf shops and other retail accounts. In the
United States, we utilize NIKE sales offices to solicit such sales. During fiscal
2021, our three largest United States customers accounted for approximately
24% of sales in the United States.Our NIKE Direct and Converse direct to
consumer operations sell NIKE Brand, Jordan Brand and Converse products to
consumers through various digital platforms. In addition, our NIKE Direct and
Converse direct to consumer operations sell products through the following
number of retail stores in the United States:

U.S. RETAIL STORES NUMBER

NIKE Brand factory stores 204 NIKE Brand in-line stores (including employee-
only stores) 30 Converse stores (including factory stores) 91

In the United States, NIKE has seven significant distribution centers. Four are
located in Memphis, Tennessee, two of which are owned and two of which are
leased. Two other distribution centers, one located in Indianapolis, Indiana and
one located in Dayton, Tennessee, are leased and operated by third-party
logistics providers. One distribution center for Converse is located in

Ontario, California, which is leased. There are other smaller distribution facilities
located in various parts of the United States, some of which are leased or
operated by third-parties.

INTERNATIONAL MARKETS

For fiscal 2021, non-U.S. NIKE Brand and Converse sales accounted for
approximately 61% of total revenues, compared to 61% and 59% for fiscal 2020
and fiscal 2019, respectively. We sell our products to retail accounts through our
own NIKE Direct operations and through a mix of independent distributors,
licensees and sales representatives around the world. We sell to thousands of
retail accounts and ship products from 70 distribution centers outside of the
United States. During fiscal 2021, NIKE's three largest customers outside of the
United States accounted for approximately 15% of total non-U.S. sales. In
addition to NIKE-owned and Converse-owned digital commerce platforms in
over 45 countries, our NIKE Direct and Converse direct to consumer businesses
operate the following number of retail stores outside the United States:

NON-U.S. RETAIL STORES NUMBER

NIKE Brand factory stores 618 NIKE Brand in-line stores (including employee-
only stores) 46 Converse stores (including factory stores) 59 International
branch offices and subsidiaries of NIKE are located in Argentina, Australia,
Austria, Belgium, Bermuda, Brazil, Canada, Chile, China, Croatia, the Czech
Republic, Denmark, Finland, France, Germany, Greece, Hong Kong, Hungary,
India, Indonesia, Ireland, Israel, Italy, Japan, Korea, Macau, Malaysia, Mexico,
the Netherlands, New Zealand, Norway, the Philippines, Poland, Portugal,
Russia, Singapore, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland,
Taiwan, Thailand, Turkey, theUnited Arab Emirates, the United Kingdom,
Uruguay and Vietnam.

SIGNIFICANT CUSTOMER

No customer accounted for 10% or more of our consolidated net Revenues

during fiscal 2021.

PRODUCT RESEARCH, DESIGN AND DEVELOPMENT

We believe our research, design and development efforts are key factors in our
success. Technical innovation in the design and manufacturing process of
footwear, apparel and athletic equipment receives continued emphasis as we
strive to produce products that help to enhance athletic performance, reduce
injury and maximize comfort, while reducing waste.

In addition to our own staff of specialists in the areas of biomechanics,

chemistry, exercise physiology, engineering, digital technologies, industrial
design, sustainability and related fields, we also utilize research committees and
advisory boards made up of athletes, coaches, trainers, equipment managers,
orthopedists, podiatrists, physicians and other experts who consult with us and
review certain designs, materials and concepts for product and manufacturing
process improvements and compliance with product safety regulations around
the world. Employee athletes, athletes engaged under sports marketing
contracts and other athletes wear-test and evaluate products during the design
and development process.As we continue to develop new technologies, we are
simultaneously focused on the design of innovative products and experiences
incorporating such technologies throughout our product categories and
consumer applications. Using market intelligence and research, our various
design teams identify opportunities to leverage new technologies in existing
categories to respond to consumer preferences. The proliferation of NIKE Air,
Zoom, Free, Flywire, Dri-Fit, Flyknit, Flyweave, FlyEase, ZoomX, Air Max, React
and Adapt technologies, among others, typifies our dedication to designing
innovative products.

MANUFACTURING

We are supplied by 191 footwear factories located in 14 countries. Virtually all

of our footwear is manufactured outside of the United States by over 15
independent contract manufacturers, which often operate multiple factories.
The largest single footwear factory accounted for approximately 9% of total
fiscal 2021 NIKE Brand footwear production. For fiscal 2021, contract factories
in Vietnam, Indonesia and China manufactured approximately 51%, 24% and
21% of total NIKE Brand footwear, respectively. We also have manufacturing
agreements with independent contract manufacturers in Argentina and India to
manufacture footwear for sale primarily within those countries. For fiscal 2021,
four footwear contract manufacturers each accounted for greater than 10% of
footwear production and in the aggregate accounted for approximately 61% of
NIKE Brand footwear production.
We are supplied by 344 apparel factories located in 33 countries. The largest
single apparel factory accounted for approximately 8% of total fiscal 2021 NIKE
Brand apparel production. Virtually all of our apparel is manufactured outside
of the United States by independent contract manufacturers, which often
operate multiple factories. For fiscal 2021, contract factories in Vietnam, China
and Cambodia produced approximately 30%, 19% and 12% of total NIKE Brand
apparel, respectively. For fiscal 2021, two apparel contract manufacturers each
accounted for more than 10% of apparel production, and the top five contract
manufacturers in the aggregate accounted for approximately 51% of

NIKE Brand apparel production.

The principal materials used in our footwear products are natural and synthetic
rubber, plastic compounds, foam cushioning materials, natural and synthetic
leather, nylon,polyester and canvas, as well as polyurethane films used to make
NIKE Air-Sole cushioning components. During fiscal 2021, Air Manufacturing
Innovation, a wholly-owned subsidiary, with facilities near Beaverton, Oregon,
in Dong Nai Province, Vietnam, and St. Charles, Missouri, as well as independent
contractors in China and Vietnam, were our suppliers of materials and
cushioning components used in footwear. Air Manufacturing Innovation also
manufactures and sells small amounts of various other plastic products to other
manufacturers. The principal materials used in our apparel products are natural
and synthetic fabrics, yarns and threads (both virgin and recycled); specialized
performance fabrics designed to efficiently wick moisture away from the body,
retain heat and repel rain and/or snow; and plastic and metal hardware. NIKE's
independent contractors and suppliers buy raw materials for the manufacturing
of our footwear, apparel and equipment products. Most raw materials are
available and purchased by those independent contractors and suppliers in the
countries where manufacturing takes place. NIKE's independent contractors and
suppliers have thus far experienced little difficulty in satisfying raw material
requirements for the production of our products. Since 1972, Sojitz Corporation
of America (“Sojitz America”), a large Japanese trading company and the sole
owner of our redeemable preferred stock, has performed import-export
financing services for us.

INTERNATIONAL OPERATIONS AND TRADE

Our international operations and sources of supply are subject to the usual risks
of doing business abroad, such as the implementation of, or potential changes
in, foreign and domestic trade policies, increases in import duties, anti-dumping
measures, quotas, safeguard measures, trade restrictions, restrictions on the
transfer of funds and, in certain parts of the world, political tensions, instability,
conflicts, nationalism and terrorism. We have not, to date, been materially
affected by any such risk but cannot predict the likelihood of such material
effects occurring in the future.

In recent years, uncertain global and regional economic and political conditions
have affected international trade and increased protectionist actions around the
world. These trends are affecting many global manufacturing and service
sectors, and the footwear and apparel industries, as a whole, are not immune.
Companies in our industry are facing trade protectionism in many different
regions, and, in nearly all cases, we are working together with industry groups
to address trade issues and reduce the impact to the industry, while observing
applicable competition laws. Notwithstanding our efforts, protectionist
measures have resulted in increases in the cost of our products, and additional
measures, if implemented, could adversely affect sales and/or profitability for
NIKE, as well as the imported footwear and apparel industry as a whole.We
monitor protectionist trends and developments throughout the world that may
materially impact our industry, and we engage in administrative and judicial
processes to mitigate trade restrictions. We are actively monitoring actions that
may result in additional anti-dumping measures and could affect our industry.
We are also monitoring for and advocating against other impediments that may
limit or delay customs clearance for imports of footwear, apparel and
equipment. NIKE also advocates for trade liberalization for footwear and apparel
in a number of regional and bilateral free trade agreements. Changes in, and
responses to, U.S. trade policies, including the imposition of tariffs or penalties
on imported goods or retaliatory measures by other countries, could negatively
affect U.S. corporations, including NIKE, with business operations and/or
consumer markets in those countries, which could also make it necessary for us
to change the way we conduct business, either of which may have an adverse
effect on our business,financial condition or our results of operations. In
addition, with respect to proposed trade restrictions, we work with a broad
coalition of global businesses and trade associations representing a wide variety
of sectors to help ensure that any legislation enacted and implemented (i)
addresses legitimate and core concerns, (ii) is consistent with international trade
rules and (iii) reflects and considers domestic economies and the important role
they may play in the global economic community.

Where trade protection measures are implemented, we believe we have the

ability to develop, over a period of time, adequate alternative sources of supply
for the products obtained from our present suppliers. If events prevented us
from acquiring products from our suppliers in a particular country, our
operations could be temporarily disrupted and we could experience an adverse
financial impact. However, we believe we could abate any such disruption, and
that much of the adverse impact on supply would, therefore, be of a short-term
nature, although alternate sources of supply might not be as cost-effective and
could have an ongoing adverse impact on profitability.

Our international operations are also subject to compliance with the U.S.
Foreign Corrupt Practices Act, or "FCPA", and other anti-bribery laws applicable
to our operations. We source a significant portion of our products from, and
have important consumer markets, outside of the United States, and we have
an ethics and compliance program to address compliance with the FCPA and
similar laws by us, our employees, agents,suppliers and other partners.

COMPETITION

The athletic footwear, apparel and equipment industry is highly competitive on

a worldwide basis. We compete internationally with a significant number of
athletic and leisure footwear companies, athletic and leisure apparel
companies, sports equipment companies and large companies having
diversified lines of athletic and leisure footwear, apparel and equipment,
including adidas, Anta, ASICS, Li Ning, lululemon athletica, Puma, Under Armour
and V.F. Corporation, among others. The intense competition and the rapid
changes in technology and consumer preferences in the markets for athletic and
leisure footwear and apparel and athletic equipment constitute significant risk
factors in our operations. Refer to Item 1A. Risk Factors for additional
information.NIKE is the largest seller of athletic footwear and apparel in the
world. Important aspects of competition in this industry are:Product attributes
such as quality; performance and reliability; new product style, design,
innovation and development; as well as consumer price/value. Consumer
connection, engagement and affinity for brands and products, developed
through marketing, promotion and digital experiences; social media interaction
customer support and service; identification with prominent and influential
athletes, influencers, public figures, coaches, teams, colleges and sports leagues
who endorse our brands and use our products and active engagement through
sponsored sporting events and clinics. Effective sourcing and distribution of
products, with attractive merchandising and presentation at retail, both in-store
and on digital platforms.We believe that we are competitive in all of these areas.

TRADEMARKS AND PATENTS

We believe that our intellectual property rights are important to our brand, our
success and our competitive position. We strategically pursue available
protections of these rights and vigorously protect them against third-party theft
and infringement.We use trademarks on nearly all of our products and believe
having distinctive marks that are readily identifiable is an important factor in
creating a market for our goods, in identifying our brands and the Company, and
in distinguishing our goods from the goods of others. We consider our NIKE and
Swoosh Design trademarks to be among ourmost valuable assets and we have
registered these trademarks in almost 170 jurisdictions worldwide. In addition,
we own many other trademarks that we use in marketing our products. We own
common law rights in the trade dress of several significant shoe designs and
elements. For certain trade dress, we have sought and obtained trademark
registrations.We have copyright protection in our design, graphics and other
original works. When appropriate, we also obtain registered copyrights.
We file for, own and maintain many U.S. and foreign utility and design patents
protecting components, technologies, materials, manufacturing techniques,
features,functionality, and industrial designs used in and for the manufacture of
various athletic and leisure footwear and apparel, athletic equipment and digital
devices and related software applications. These patents expire at various
times.We believe our success depends upon our capabilities in areas such as
design, research and development, production and marketing and is supported
by our intellectual property rights, such as trademarks, patents and trade
secrets, among others.We have followed a policy of applying for and registering
intellectual property rights in the United States and select foreign countries on
trademarks, inventions, innovations and designs that we deem valuable. We
also continue to vigorously protect our intellectual property, including
trademarks, patents and trade secrets against third-party infringement.

HUMAN CAPITAL RESOURCES

At NIKE, we consider the strength and effective management of our workforce

to be essential to the ongoing success of our business. We believe that it is
important to attract,develop and retain a diverse and engaged workforce at all
levels of our business and that such a workforce fosters creativity and
accelerates innovation. We are focused onbuilding an increasingly diverse talent
pipeline that reflects our consumers, athletes and the communities we serve.

CULTURE

Each employee shapes NIKE’s culture through behaviors and practices. This
starts with our Maxims, which represent our core values and, along with our
Code of Conduct,feature the fundamental behaviors that help anchor, inform
and guide us and apply to all employees. Our mission is to bring inspiration and
innovation to every athlete in the world, which includes the belief that if you
have a body, you are an athlete. We aim o do this by creating groundbreaking
sport innovations, making our products more sustainably, building a creative
and diverse global team and making a positive impact in communities where we
live and work. Our mission is aligned with our deep commitment to maintaining
an environment where all NIKE employees have the opportunity to reach their
full potential, to connect to our brands and to shape the culture inwhich they
work. We believe providing for growth and retention of our employees is
essential in fostering such a culture and are dedicated to giving access to training
programsand career development opportunities, including trainings on NIKE’s
values, history and business, trainings on developing leadership skills at all
levels, tools and resources for managers and qualified tuition reimbursement
opportunities.

As part of our commitment to empowering our employees to help shape our

culture, we source employee feedback through our Engagement Survey
program. The program provides every employee throughout the globe an
opportunity to provide confidential feedback on key areas known to drive
employee engagement, including their satisfaction with their managers, their
work and the Company generally. The program also measures our employees’
emotional commitment to NIKE as well as NIKE’s culture of diversity,equity and
inclusion. NIKE also provides multiple points of contact for employees to speak
up if they experience something that does not align with our values or
otherwiseviolates our workplace policies, even if they are uncertain what they
observed or heard is a violation of company policy.As part of our commitment
to make a positive impact on our communities, we have maintained a goal of
investing 1.5% of our prior fiscal year’s pre-tax income into global
The First Nike Marketing Strategy

Bill Bowerman was a track and field coach, as well as one of the co-founders of
Nike. In the mid-1970's, he began experimenting with his wife's waffle maker to
design a better tread for running shoes. As the story goes, he ruined the waffle
maker but invented a brand new type of shoe. He later used that design to
create the first Nike shoe commonly referred to as the "Nike Moon shoe." It was
the first step of many that put Nike on the map, but there is more to the story
than just a great tread design and a waffle maker. There's also the story of Nike's
incredible, if not accidental and seemingly counterintuitive, approach to
promoting their product. Bowerman, you see, is also credited as the man who
brought about the jogging craze that swept America in the late 1960's and 70's.
While you would think that jogging wasn’t something that needed to be
invented, it wasn’t all that popular as an exercise or activity at that time. Bill’s
work and research truly brought jogging out of obscurity and to the forefront of
After observing a jogging club in New Zealand, Bill began to understand the value
of jogging as a traditional fitness routine. Bill immediately began writing articles
and books about jogging and how it could be used as part of a fitness program.
His first three-page pamphlet was called the Jogger’s Manual and was later
expanded into a 90-page book (see below) that he wrote along with an

experienced cardiologist.

Along with Bill's other involvements with professional athletes, his work helped
inspire the 1970's running boom that Nike clearly benefited from. Was this the
result of a strong marketing strategy Or was it just a coincidence? The answer is
probably a mix of both. It would be really great to point to Bowerman's story as
a case-in-point example of content marketing at its finest, but it is difficult to do.
The book was technically released before the first pair of shoes, and even before
he invented the waffle tread. So, if it wasn't true content marketing, what was
it and how did it even work?

Put Customer Interests First

Customers like great products and they like serious benefits. For them, things
that benefit them personally are easy to justify. The Nike Moon shoes did this,
but only because the customer was beginning to understand jogging and its
benefits for their health. Bill's secret goal wasn't to sell shoes, he was simply
promoting something that he believed in. This may not sound like a marketing
strategy, but it certainly should.

Base Your Strategy On A Felt Need

Initially for Nike's audience, the felt need wasn't for better running shoes, but
for a better way to get in shape. Certainly, running was already popular among
kids and athletes in the 1970's, but it wasn't the widespread social activity that
we see today. The growing white-collar workforce helped pave the way for social
activities that included the promotion of cardiovascular health. Once the trend
was ingrained, the need shifted and the "jogging shoes" themselves became the
felt need.

Believe In the Product You Are Selling

It's unlikely that Bowerman's original goal was to become a millionaire as he

penned the pages of his first jogging pamphlet. That wasn't why he did what he
did. His only goal was to promote a sport and an idea that he believed in. As
marketers, shouldn't we believe in the product and the ideas we are selling? For
Bowerman, it sure made marketing a lot easier. He was "marketing" without
even realizing what he was up to.

Sell Easily Identifiable Benefits Instead Of The Product

While jogging is pretty easy to understand, the waffle tread isn't (at least not
until you understand why Bowerman made it in the first place). His goal was to
make the world's most light–weight running shoe. He believed that this factor
alone could dramatically improve the speed of a distance runner. His product

worked and quickly gained the industry respect that it deserved.

How Nike’s Marketing Strategy Evolved

As the marketing landscape has changed since the 70s, so has the Nike
marketing strategy. In fact, it’s remarkable how well the brand has adapted its
approach to new trends and technologies without losing the core of
their identity or brand voice. It’s key to understand that while their general
aesthetic and tactics have changed with the times, their customer-centric
messaging has remained consistent.

Embrace New Technologies

While Nike's early marketing strategy centered on print publications, they later
went on to dominate other mediums, like television in the 80s and 90s, through
modern social media platforms today.

Adapt To The Needs Of Your Audience

Nike hasn’t historically adopted new communication platforms for their

marketing just because they’re chasing new, flashy objects. Far from it. Rather,
they’ve been quick to conquer new mediums because they’re where their
customers are. For example, take a look at their They know their core
demographic includes heavy Instagram users and so it makes sense for their
brand to maintain a presence there. However, they also make sure that
everything they post provides value. Rather than interrupting the flow of their
follower’s feeds with flagrant sales pitches, they share motivational messaging.
Other posts subtly tie into the brand’s history and their sponsored influencers
while directing users to interest–specific Nike sub-accounts on Instagram. In this
case, they could have simply said something to the effect of, “Check out our
women’s footwear and apparel profile, and our general running product
profile." Instead, they went the extra mile and created something memorable
and entertaining while staying relevant to what their audience wants to see.

Stay True To Your Sense Of Purpose

They say the more things change, the more they stay the same. For Nike, that
has certainly remained true. Throughout their current content marketing
initiatives, Nike makes sure their brand message hasn’t gotten lost over time or
across channels. They focus their emphasis on creating content that promotes
the benefits of their products, rather than the features. Helping their customers
be better at what they love to do is still the focus of their branding and message.
By moving their content marketing to the platforms where their customers are,
it shows that they are keeping their audience’s needs in mind while staying true
to themselves. Nike's marketing strategy has succeeded in sustaining a global
brand while many of their competitors have come and gone from the spotlight.

Modern Examples of Nike’s Benefit & Use-Centric Marketing

Across all their channels, Nike’s marketing strategy has stayed consistent since
their founding: promote the benefits and use cases for products, rather than the
products themselves. Today that looks a little different than it did when
Bowerman first published his jogging pamphlet, but the general idea stays the
same.

Nike on Instagram

This post from Nike’s main Instagram account is a great example. They build the
perception of their brand as forward-facing and promoting a future with
sustainability and a focus on the health benefits of sport. As you will see in other
examples, this post never promotes a Nike product. Rather, they focus on their
brand perception and framing themselves as progressive within the context of
modern sporting debates.

Nike’s Email Marketing

Nike has been operating in Brick and Motar market for a very long time. Brick
and motar market has been the main market for this firm. However, the
management has been keen on using applying modern technologies. This has seen
it embrace e-market in the current society.

The management has been advancing in technology, and currently Nike is one of
the leading firms in the apparel industry that has advanced in the use of virtual
market. The website of Nike is well developed to support e-marketing. However,
this is possible in the European and American markets. The firm is yet to capture
international markets in countries considered to be less developed in
infrastructure. The firm still operates in pure brick and motar markets in African
countries and most of the Asian countries.

Brand Image

Brand is one of the most important asset within an organization. Brand is the most
important asset that a firm can ever own. With a strong brand, a firm is always
assured of growth in the market. Establishing a brand is a complex process that
requires the management to convince the market of the quality of the product.The
brand Nike is one of the strongest brands in the market of apparel industry. The
market trusts this brand as it has been positioned as a brand that cherishes quality.
The management has been able to outsmart other competitors in making this
brand very strong. The logo for this brand is a swoosh, as demonstrated below.

Nike Logo

The brand name Nike has been growing consistently over the years. The name
has become very popular not only among the athletes, but also with other market
segments in the apparel industry. The popularity of this brand has surpassed that
of other competing firms such as Adidas and Puma.In order to reach this position,
the management has been keen on endorsements by known celebrities. Nike has
been striving to attract the African market. As such, it used Didier Drogba of
Ivory Cost in West Africa. This is one of the most celebrated African footballers.
The use of this celebrity has helped this firm increase its market share in this
region.

The Target Market

In marketing, it is always important to define the target market. This always helps
in ensuring that marketers understand the approach they should take in marketing.
For Nike, the target market has been the athletes who use their products in their
games. However, as it grew, the management realized that the market was going
beyond the athletes. Other members of the society who wanted simple sportswear
and other casual wear were also visiting their shops. The management had to
consider coming up with a strategy that would help capture the new markets.
Currently, the management has come up with segmentation approach in its
market. Besides the initial segment of the athletes, the firm has segmented its
current market on demographical basis.

Competitors

In this industry, Nike is facing serious challenge posed by the increased market
competition. Market has become very competitive as new firms come into the
market.The main competitors for this firm in this industry are Puma and Adidas.
These firms have established themselves in the market for a very long. Adidas is
one of the leading footwear firms in this industry. Both Adidas and Puma are
German firms. However, there are many other locals firms operating in this
market.

Market Proposition

Market propositioning is one of the important strategies that a firm uses in order
to gain competitive advantage. When communicating to the market on the brand
image, a firm should choose the most appropriate communication approach. The
best approach to communicate this information to the customers will be based on
the market segment. When the target market is for the youths, then the most
appropriate means of communicating this message is through the social
media.Such social media as Facebook, YouTube, and Tweeter are some of the
most relevant social media that can be used. When targeting the general market,
mass media can be appropriate. This firm has been using unique selling
proposition, making it different from other competitors. The fact that this firm
uses the social media in communicating their brand proposition in the market
makes it unique.

Updating the Marketing Mix

In the current competitive market, a firm must keep focus on the dynamics that
take place. Most of the products of Nike are sold throughout the year. However,
there are cases when there are special events like sporting events, the sales would
always shoot. During such occasions, the marketing approach would be based on
that event. This has enabled Nike come out strongly as a firm with the capacity
to meet expectations of the market irrespective of the season.

Design and Creativity of the Website

Many firms are currently embracing online marketing in various industries. For
a firm to be competitive, it must be in a position to come up with unique designs
that would help it differentiate itself from others. In their websites, this firm has
made use of animation in a special way. In their websites, there are different
sections for different products, each focusing on a particular product. An
animation of a popular athlete winning a race wearing a Nike boots would be used
to advertise the shoes. Similarly, it would use an animation of a renowned
footballer when advertising a track suite or any other related product. The website
has been designed in a way that makes it easy to navigate through. The online
store has been arranged in a way that convinces the market that this is the right
place to be.Nike has designed various advertisements in different ways. In order
to strengthen their online marketing, the firm has prepared pop-ups in various
popular sites such as Yahoo. Although this can be annoying to the viewer who
may not need the information at that time, it is helpful to the firm because it acts
as a constant reminder to the customers of the existence of the product in the
market.

E-commerce

The primary objective of adopting e-commerce is to increase sales within the

market. Many scholars have emphasized on the relevance of e-commerce in the
current society. Nike has been able to use e-commerce to increase its sales in the
market. Although the brick and motar remains the primary approach this firm
uses in the market, the firm is embracing e-marketing in order to reach out to the
section of the market that cannot be reached by other firms.One of the best
development that this firm has made in the e-market above its competitors is the
mobile-strategy. Most of the firms that have applied e-marketing depend on
desktops or laptops to support purchase of their products. However, in Nike’s
mobile strategy, customers with internet-enabled phones can visit the stores and
using their mobile phones and complete their purchase using this gadget. This has
given it an advantage over its market competitors.

The marketing management has been working on an approach that can help them
personalize their products. Although this this has not been very successful due to
variability of the market, the firm has made some success in this approach. The
marketing management has been segmenting the market based on various
demographical factors and the regions of the customers. In each region, the
adverts and sale strategy would be based on consumer behavior in that region. It
has also customized its products based on the target market.As any other firm,
Nike has developed terms of service that would help regulate its online
operations. These terms explains the relationship between the customer and the
firm, and the terms of sale. The firm has also made an effort to address cognitive
dissonance among its customers. It has clear channels of communication that
helps in addressing any post purchase dissonance that its online customers may
have in the process of consuming its products.

Developing Relationship with the Customer

Buzz marketing is a strategy that is becoming relevant in the current society. Nike
has been making an effort not only to have a large base of loyal customers, but a
community where customers can easily communicate amongst themselves and
with the firm. The management has been keen on developing a close relationship
with its customers by maintaining constant communication with them.

Nike has been using blogs as a way of maintaining a close relationship with the
customers. The firm has adopted a special software that helps it survey the amount
of time its customers take when they visit the website, and the products they spend
more time viewing. This helps the firm define tastes and preferences of these
customers in the market.

In order to attract children and youths, who may be the initiators of a purchase
process, the firm has developed free online games for them. In this games, the
‘players’ are ordained in a complete attire of Nike, from the cap, armband, the
track and the shoes. This promotes popularity of this brand in the market. The
firm has also remained active in the social media such as Facebook, Tweeter, and
YouTube among others. This constant communication with the customers helps
this firm in maintain close relationship and trust with them.
Mining Data of Outside Purchase

With the special software that the firm has adopted, it is in a position to estimate
the volume of products that specific customers, especially organizational
customers, make in a season. This way, the firm will be able to detect if such
organizational buyers have developed new markets other than Nike.Given the
close relationship maintained through various communication channels, the
management can reach to them directly and inquire why they changed their
loyalty. This way, any form of mistrust or misunderstanding is addressed with a
lot of ease.In its sales promotions strategy, the management has been using
various approaches depending on whether the target customer is on brick and
motar market or the online market. For brick and motar markets, the use of loyalty
cards has been very common. For online customers, the firm has been using
download coupons in order to attract more customers to its products.

Although personal sales in not applicable in the online market, the management
has been using sales representative to visit selected customers, especially the
organizational buyers in the market. The marketing unit has also designed direct
mails that it uses to reach out to the customers with relevant information such as
new product release, special sales, news of relevant events in the society such as
corporate social responsibility.

The marketing management unit recently came up with a tell-a-friend program

where customers are encouraged to share their pleasant experience of using the
firm’s products with the friends. Nike uses this approach to encourage viral
marketing. Through this strategy, one customer would attract another customer
who will in turn invite another. The ultimate aim is to develop a web of loyal
customers in the market.

Public Relations
The management of this firm has be keen on maintaining a positive relationship
with the market and the public. It has embraced public relations as a way of
convincing the market that the firm does not just focus on the profits it stands to
get from its operations in this market. The firm has developed public relation unit
that helps it address issues relevant to this field. This department also operates in
the website of this firm.

In their website, Nike has all the relevant information that anyone may need about
the company and its products. The company also uses the page to pass important
press release, news and product information. As a way of building its brand, the
firm has initiated various philanthropic strategies to help improve its relations
with the public. It is important to note that this firm still uses the traditional media
(mass media) to reach out for a larger market. This helps in increasing traffic to
its website.

SWOT Analysis

Nike operates in a very competitive market. It is faced with a number of

challenges, as there are opportunities. In order to improve understanding of this
firm, a SWOT analysis given below would be of help.

Strengths and Weaknesses of the Company

Nike has some special abilities that can be considered its main strength in the
market. The ability of this firm to embrace mobile marketing is a special ability
that makes it stand out in the world as one of the few firms with this capacity in
this industry. To help it succeed in this industry, this firm has come up with a
quality control unit in all its branches in order to ensure that it delivers quality
products to the customer.Ability to deliver quality service to the customer has
made it develop a special niche in the market making its products popular across
the world. The firm is also one of the first firms that embraced value chain
management. Through this, the firm has been able to continue satisfying its
customers at a cheaper cost. The ability of this firm to adopt the emerging
technologies has been considered as strength by other firms.

Despite the above strengths for this firm, it has some weaknesses that have
impeded its growth to a given degree. One of the main concerns that this firm has
not addressed properly is the issue of environmental management. The products
of this firm are known to be very dangerous to the environment.

This is especially so when it comes to the rubber products of this firm. This firm
has been criticized, alongside other firms, for polluting the environment. This
firm is yet to come up with a clear structure on how it can manage environmental
pollution caused by its wastes around the globe. The firm has claimed that it has
been engaging in corporate social responsibility. However, this has not been
enough to make the public believe its commitment to a cleaner environment.

Opportunities and Threats

In every industry, there are always opportunities and threats that a firm may come
across in the external environment. Various opportunities exist for Nike in its
operations in the global market. One of the opportunities that this firm has had is
an expansive and unexploited market in the third world countries. Most of the
apparel firms have focused their effort on building a large base of loyal customers
in the leading economies like the United States and the European markets.

This firm has managed to tap into the emerging markets in African and parts of
Asia. The stable economic growth in the major economies means that there is
increased opportunity for this firm to increase its sales in such countries as the
American markets and the markets in Europe. The emergent of an economically
empowered youth around the world is also another opportunity that this firm has
been able to exploit. There are threats that exist in this industry that is worth
noting. Technology is probably the main threat that this firm faces in this industry.
Nike has used technology to reach its current position.

However, it is a nightmare trying to figure out what some of the competitors can
do with this same technology. Another biggest threat that this firm faces is the
stiff competition posed by rival firms. This industry is one of the most
competitive industries in the world. Any slight mistake by the firm may result in
a situation where its market share is taken over by other rival firms.

Recommendations

Nike’s adoption of e-marketing has generally been a success. However, the firm
has not used its full potential. The following recommendations can be of benefit
to this firm.The management should increase the presence of its products in its
website.The firm should embrace market segmentation and ensure that each
market segment is provided with the right products.The firm should maintain
quality both in its brick and motar, and in its online markets.

The management should engage more celebrities to help strengthen its brand
in the e-market.This research paper, "Nike’s E-marketing in Its Market Strategy"
is published exclusively on IvyPanda's free essay examples database. You can
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This email example from Nike shows how their brand uses notable sporting
influencers (Coach K) and their global community to promote themselves as a
leader in sports. This framing makes it so that when people think sports, they
think Nike. When your brand is one of the first to mind within your niche, your
audience will be likely to make purchases from you when they need to. And
again, you never need to promote your product.

Nike on TV

This recent TV ad from Nike shows how they use their influence within the
sporting world to frame themselves as a positive influence within the context of
some timely national issues. This ad puts the spotlight on black women in sports,
a group which historically has not been treated with the same level of respect
as their male and white counterparts. This sort of messaging is common from
Nike these days, and has made the brand a representative for broader social
movements which their customer base can get behind. They are selling a
movement, not a product, and are starting positive conversations in the process.
Now that’s providing value through content.

Nike's Marketing Mix (The Four Ps)

While these promotional activities work well to help understand Nike's

marketing strategy, it helps to understand the marketing mix in which they are
used.

Product

Nike sells sporting and athletic shoes, apparel, equipment, and accessories. The
brand has also expanded into more fashionable clothing lines in recent years,
though their niche is still athletic apparel.
Price

Nike implements both value-based and premium pricing strategies to price and
sell their products. Value-based pricing uses consumer perception to determine
the maximum price consumers are willing to pay for their products. Premium
pricing, on the other hand, comes into play when you consider Nike’s use of
celebrity endorsements and influencer marketing, which positions Nike as a
premium brand which is worth paying premium prices for.

Place

Nike sells its products through three main sources: retail stores, Nike’s online
store, and company-owned retail outlets. Using retail stores is an effective
strategy for Nike because it allows them to meet their consumers where they
are without investing exorbitant amounts of money opening a chain of brand-
specific stores. Their online store allows for more options than retail stores, but
are at a disadvantage because consumers are unable to see the products in
person and try them out before purchasing. Nike’s retail outlets act as another
way to reach customers, and often have lower prices than regular retailers. They
are, however, limited in location and access to populations.

PromotionNike employs various promotional strategies to build brand

awareness, engage consumers, and drive sales. Here are some key elements of
Nike's promotion strategy:

Athlete Endorsements: Nike is renowned for its partnerships with high-profile

athletes across different sports. Athletes like LeBron James, Cristiano Ronaldo,
and Serena Williams not only endorse Nike products but also contribute to the
company's marketing campaigns, showcasing the performance and style of Nike
gear.
Iconic Marketing Campaigns: Nike has a history of creating iconic marketing
campaigns that resonate with consumers. The "Just Do It" slogan, introduced in
1988, has become synonymous with the brand and is often featured in advertising
campaigns that emphasize determination, achievement, and athletic excellence.

Engaging Advertising: Nike invests heavily in visually compelling and

emotionally engaging advertising. TV commercials, online videos, and print
advertisements often feature dramatic visuals, inspirational stories, and a diverse
range of athletes, appealing to a broad audience.

Social Media Presence: Nike maintains a strong presence on various social

media platforms, including Instagram, Twitter, and Facebook. The company uses
these channels to share engaging content, connect with consumers, and promote
new product releases. Social media also allows Nike to build a community around
its brand.

Limited Edition Releases: Nike frequently launches limited edition products

and collaborations with celebrities, designers, and other brands. These exclusive
releases generate excitement and a sense of urgency among consumers, driving
both online and in-store traffic.

Product Launch Events: Nike organizes product launch events, both physical
and virtual, to unveil new products. These events often feature live streams,
interactive elements, and exclusive access to create buzz around the latest
releases.

Customization Options: Nike offers customization options for some of its

products, allowing customers to personalize their athletic gear. For example, the
NikeID platform enables customers to design their own shoes, adding a unique
and personal touch to their purchases.
Sponsorships and Partnerships: Nike sponsors major sports teams, leagues,
and events globally. This not only provides visibility for the brand during key
sporting events but also aligns Nike with the passion and energy associated with
sports.

Digital Platforms and Apps: The Nike app serves as a central hub for
consumers, offering personalized content, early access to products, and seamless
shopping experiences. Digital platforms play a significant role in connecting with
consumers and promoting loyalty.

Community Engagement: Nike engages with communities through initiatives

such as youth sports programs and events. The company's involvement in social
causes and efforts to promote diversity and inclusion also contribute to its positive
brand image.Nike's promotional strategies are dynamic and adaptive, reflecting
the evolving nature of the sports and lifestyle market. It's important to stay
updated with the latest marketing campaigns and initiatives to understand how
Nike continues to promote its brand and products.Certainly, here are a few more
aspects of Nike's promotional strategies:

Retail Partnerships: Nike collaborates with various retail partners to distribute

its products. These partnerships can include exclusive releases or special
collections available only through specific retailers, creating excitement and
driving traffic to those stores.

Innovative Product Launches: Nike often employs innovative techniques for

product launches. For instance, using augmented reality (AR) experiences or
interactive digital campaigns to introduce new products, providing a unique and
memorable experience for consumers.

Brand Collaborations: Nike collaborates with other brands, designers, and

cultural influencers for limited-edition collections. These collaborations, such as
those with Off-White, Travis Scott, and others, blend sports performance with
fashion and streetwear trends, appealing to a diverse and fashion-forward
audience.

Nike Training Club (NTC) and Nike Run Club (NRC): Nike's fitness apps,
NTC and NRC, provide users with workout plans, training guidance, and a sense
of community. These apps not only promote a healthy and active lifestyle but also
serve as platforms to showcase Nike products and encourage brand loyalty.

Events and Activations: Nike organizes events and activations, ranging from
local community runs to large-scale global events. These experiences allow
consumers to engage directly with the brand, participate in sports and fitness
activities, and try out new products.

Cultural Relevance: Nike stays culturally relevant by incorporating social and

cultural issues into its marketing. This approach is evident in campaigns that
address topics such as diversity, empowerment, and social justice, reflecting the
values and concerns of its target audience.

Virtual Experiences: In the digital age, Nike has embraced virtual experiences.
Virtual launches, augmented reality apps, and online events provide consumers
with new ways to interact with the brand and its products.

Nike SNKRS App: Nike's SNKRS app is dedicated to sneaker releases and
exclusive drops. The app creates a sense of anticipation and excitement,
especially among sneaker enthusiasts, by offering limited-time releases and
access to special editions.

Consumer Loyalty Programs: Nike operates loyalty programs, such as

NikePlus, where members receive exclusive benefits, early access to products,
and personalized recommendations. Loyalty programs encourage repeat
purchases and foster a sense of belonging among Nike enthusiasts.

Content Marketing: Nike invests in content marketing through its digital

channels. This includes blogs, articles, and videos that not only showcase product
features but also tell compelling stories about athletes, innovation, and the
broader sports culture.

As with any dynamic industry, Nike's promotional strategies continue to evolve.

Staying informed about the latest campaigns, collaborations, and initiatives
through official announcements and social media channels will provide insights
into the brand's current promotional approach.here are a few additional elements
of Nike's promotional strategies:

Celebrity and Influencer Collaborations: Nike often collaborates with

celebrities and influencers from various fields, beyond traditional sports. This
includes partnerships with musicians, artists, and cultural icons to create limited-
edition products and generate buzz among diverse audiences.

Consumer Engagement through Apps: Nike utilizes mobile apps not only for
shopping and personalized content but also for interactive experiences. This may
include augmented reality features, gamification, and challenges to keep users
engaged and connected to the brand.

Product Endorsement in Entertainment: Nike products are frequently featured

in movies, TV shows, and music videos. This form of product placement helps to
reinforce the brand's image in popular culture and reaches audiences beyond the
traditional sports and fitness spheres.

Emphasis on Health and Wellness: Nike emphasizes health and wellness in its
promotional activities. This includes campaigns that focus on overall well-being,
mental health, and the importance of staying active, aligning the brand with
broader lifestyle trends.

Pop-Up Shops and Experiences: Nike occasionally sets up pop-up shops and
experiential retail spaces. These temporary installations create a sense of urgency,
attract foot traffic, and provide consumers with a unique and immersive shopping
experience.

Social Responsibility and Activism: Nike has been involved in campaigns that
address social issues and promote positive change. Notable examples include the
"Dream Crazy" campaign featuring Colin Kaepernick, which sparked discussions
about racial equality and social justice.

Localized Marketing: Nike tailors its marketing campaigns to local cultures and
preferences. This approach allows the brand to connect with consumers on a more
personal level, acknowledging regional differences in style, sports preferences,
and cultural nuances.

Interactive and Shoppable Content: Nike incorporates interactive and

shoppable content into its online presence. This includes interactive videos,
shoppable social media posts, and other features that make it easy for consumers
to explore and purchase products directly from digital platforms.

Customer Reviews and Testimonials: Nike leverages customer reviews and

testimonials in its marketing materials. Positive feedback from athletes and
everyday consumers can be a powerful tool for building trust and credibility.

Responsive Marketing: Nike is known for its ability to respond quickly to

cultural events and trends. The brand sometimes releases products or campaigns
in response to current events, making its marketing highly relevant and
timely.These additional aspects highlight Nike's diverse and dynamic approach
to promotion, encompassing a wide range of marketing channels and strategies
to connect with its global audience. Keep in mind that the specifics of these
strategies may evolve over time based on market trends and consumer
behaviors.Certainly, here are a few more aspects of Nike's promotional strategies:

Engagement with Sneaker Culture: Nike has a significant presence in sneaker

culture. Limited-edition releases, collaborations with influential sneaker
designers, and participation in events like Sneaker Con contribute to the brand's
influence in the sneakerhead community.

User-Generated Content (UGC): Nike encourages users to generate and share

content featuring its products. This can include photos and videos of individuals
using Nike gear during workouts, sports activities, or simply as part of their
lifestyle. Nike often incorporates UGC into its marketing campaigns.

Nike Training and Running Clubs: Nike organizes and supports local running
and training clubs. These clubs provide a sense of community for fitness
enthusiasts, and the association with the Nike brand enhances the company's
visibility in the active lifestyle space.

Interactive Retail Displays: In some of its flagship stores, Nike incorporates

interactive and technologically advanced retail displays. These displays may offer
virtual try-ons, customization options, and product information in an engaging
and immersive manner.

Global Events Sponsorship: Nike sponsors major global sporting events and
competitions, such as the Olympics and FIFA World Cup. This not only provides
extensive brand exposure but also positions Nike as a key player on the global
sports stage.
Product Seeding: Nike engages in product seeding, providing influencers,
athletes, and celebrities with pre-release or exclusive products. When these
individuals showcase the products on social media, it creates anticipation and
desire among their followers.

Storytelling Through Content: Nike is known for its storytelling approach in

marketing. The company creates narratives around its products, athletes, and
innovations, using compelling stories to connect with consumers on an emotional
level.

In-Store Exclusives: Nike often releases exclusive products available only at its
physical retail locations. This strategy encourages foot traffic to brick-and-mortar
stores, providing consumers with a unique shopping experience.

Responsive Advertising: Nike has demonstrated agility in responding to real-

time events and cultural shifts through its advertising. This includes timely and
relevant campaigns that align with social conversations, sports events, or societal
movements.

Seasonal Campaigns: Nike launches seasonal campaigns to coincide with key

sporting events, holidays, or specific times of the year. These campaigns may
introduce new collections, feature themed products, or align with seasonal
activities. Remember that Nike's promotional strategies are dynamic, and the
company may adopt new approaches or adjust existing ones based on market
trends, consumer preferences, and cultural shifts. Stay updated with Nike's
official communications and marketing campaigns for the latest insights into the
brand's promotional activities

How To Apply The Nike Marketing Strategy To Your Own Brand

The history of Nike’s marketing strategy is interesting in itself. What you
probably want to know at this point is how to apply these lessons to your own
work.

Figure Out The Needs Of Your Audience

Your audience is on the Internet because they’re looking for answers to

questions. One way to position your brand or blog as an authority on your topic
or market is to create compelling content that addresses those concerns. Doing
this well means understanding exactly what your audience’s goals are and what
they want to know, and then being there to answer and give solutions when
they need them. Do this well enough, and you might even turn readers into
passionate brand advocates. In Nike’s case, people were looking for new ways
to stay in shape. As jogging became more popular, people needed jogging shoes.
Nike then smartly positioned themselves not just as a company that made shoes,
but a company that helped their customers achieve their fitness goals (and just
If you’re unsure what your audience is really looking for, try putting yourself in
their shoes for a moment (no pun intended) and think beyond the scope of your
product or service. Instead of thinking about your product’s features or
competitive advantages, think about what goal your customer is trying to
achieve. Then, be there with the information, products, and services they need
to make it happen. This means you need to do your research first.
How to Drill Into Data To Extract Powerful Social Media Insights

Figure Out The Best Way To Reach Your Audience

In terms of your blog and overall digital marketing efforts, this means that you
need to figure out where your audience hangs out on the Web and how you can
best reach them there. Which social networks are they most active on? Should
you pay to promote your content on those networks? Does an email
newsletter make sense for your customers? Could print collateral be something
they’re interested in? These are big questions to answer, but the key point to
remember is that it's important to go where your audience is. Before considering
any content distribution tactic, think about your customer’s habits, what types
of content they prefer, and where they prefer to find it. Make sure
you're thorough in your approach when it comes to doing everything you can to

spread.
After all, if you're going to try to market like Nike, then you can't afford to settle
for the status quo.
Create Compelling Content That Addresses Audience Needs

Whether it’s on your blog, social media channels, video platforms, or print
collateral, every piece of content you create should address customer needs.
Not only that, but you need to be creating the best content on your topic
anywhere on the Web. If you’re not answering questions, solving problems,
being entertaining, or otherwise helping your audience be better at doing what
they love, then it’s time to rethink your approach. If you’re unsure of what your
customer’s real needs are, consider everything from simple keyword research
to surveys to get a better idea of what kind of content you can create that they’ll
find valuable. This process should give you a good visualization of how you cango
You'll also want to consider what content creation budget and resources you
have available.

Key Takeaways About Nike’s Marketing Strategy To Grow Your Brand

If this all seems like a lot of information to take in, that's because it is. If there's
just one thing you remember from this post, however, it's the idea of creating
content that spreads, instead of content that just sells.

The Benefits Of Not Selling

Here's the cool thing: Bill didn't sell shoes; he didn't need to. Instead, he sold
jogging and all of the benefits that came with it. This should make us pause as
marketers. Instead of selling our products we should be selling the benefits that
products like ours promote. Running shoes matter to people who jog, so selling
them on jogging is always a good first step. The same goes for us here at
CoSchedule. We sell a family of marketing software products that help
marketing teams get organized and do better work. The more people that need
to organize and plan their business marketing operations, the more copies of
our software we sell. We also gain the added benefit of understanding why our
customers buy what we are selling in the first place. Even in the world of content
marketing, there is a lot of selling. This is fine, but it misses the real point that
Bowerman so aptly understood: spread ideas, not products.

Good Content Marketing Doesn't Sell, It Spreads

Content marketing is growing, and that usually brings fuzzy definitions that blur
the lines between what something actually is and what it is becoming. It's often
pegged as a process rather than a technique, but content marketing doesn't
depend on a specific set of tools or a common workflow. It is about providing
value and building trust with customers. Bowerman's book built trust and
provided immense value–a trait that naturally carried over to his products. He
didn't intend for the book to be used as content marketing, but because, with
content, the lines between value and marketing are so blurry, marketing is
exactly what he did.

Selling Ideas, Not Products: Just Do It

Bill Bowerman grew Nike from pipe dream to a timeless brand by providing real
value to his audience. He promoted something he believed in and, in the
process, started a trend which lifted running into the mainstream of exercise.
Yes, Nike’s shoes were his product. But rather than promoting his product,
Bowerman sold knowledge and content catered specifically to the needs of his
audience, uniting a community of like minded individuals around his brand and
thrusting Nike into the spotlight as a global brand. There’s a lot that goes into
building a content marketing plan like Nike, but if you take anything with you
from this post, let it be this: Strategy is great. Using keywords is smart. Social
media is the future. But providing customers value, no matter the medium, will
never go out of style.

Introduction & Background

Nike is a worldwide leading brand in sportswear manufacturing, it can produce

lots wide range of clothes and footwear.it was founded in 1964 by Phil Knight to
be able to open the first retail shop in 1966 then launch the brand shoe, Nike, in
1972. the company changed to Nike Inc. in 1978 to become more popular
internationally under this name and become a worldwide leader in sportswear
nowadays [1].Nike is directed by Phil knight as chairman along with a board of
directors to be the largest suppliers of footwear in the world.Nike brand was
strengthened year by year and converse sales were growing every year
[2].curently operates globally in 25 countries over the world with different types
of branches and stores that reach 592 stores in these countries, the manpower that
operates these stores is around 62,600 employees from multiple nationalities[2].

Financial Performance

Financial performance analysis is a quantitive or qualitative method that can be

used to measure how a business acts either strong or bad when the business has
good financial performance which often means it has growing revenues,
controlled liabilities, and an efficient cash flow. However, financial performance
is subjective no single metric will be enough to judge business performance [3].in
this study will follow quantitively analysis.no one metrics that can be enough to
have quantitively Financial performance analysis there are many metrics to make.
this study will use the most common metrics that include but are not limited to
the balance sheet, income statement, and cash flow.

Income statement

The income statement is the most important statement that is used mainly to
report the financial performance of the firm over a certain period .it has other
different names as well called profit and loss statement of revenue and expense
statement, these metrics indicate with the firm go in profit or in loose[4].the basic
equation to calculate the income statement is

Nike's income statement for the last six years each year start from the first of Jun
to the end of May for the next year is shown in table1, which shows that
Nike's [5].
Table 1 Nike Income statement last six years (stock-analysis-on.net, 2021c)

Figure 1Net Income over last six years (stock-analysis-on.net, 2021c)

Balance sheet

“The balance sheet is a financial statement that reports a company's assets,

liabilities, and shareholder equity at a specific point in time [6].” The balance
sheet measures the firm power to fit with its liabilities since at a certain point of
time it is used to snapshot what the firm is owned and what the money the
company owes and needs to pay for creditors, in addition to what is the
shareholder equity. The balance sheet gives the actual value for the firm also
participates with other metrics to calculate finance ratios (JASON &
FERNANDO, 2021).

Nike balance sheet at 31-05 of each year for the last 6 months is shown in table 2
it consists of two parts on the upper sections record of Nike assets and the bottom
section recorded the liabilities.

Table 2 Nike Balance Sheet at 31-5 for last six years[7]

Figure 2 Total assets at 31-5 for last six years (stock-analysis-on.net, 2021a)

Cash flow

The cash flow statement is to demonstrate how the company manages its cash to
pay its debt obligations and fund its operating expenses. This metric work with
account statement and balance sheet to measure financial performance.Nike's
cash flow statement at 31-05 for the last six years is shown in table 3 that shows
an improvement in cash flow for Nike, the company cash flow on 31-5-2016 was
3,138 M$ and ends the year with a cash amount of 9889 M$ at 31-5-2021 it means
that the cash flow increased by 315% six years [8].

Table 3 Nike Cash Flow at 31-5 for last six years [8]
Methodology

In the previous section main three financial performance metrics had been
introduced and to have a clearer financial situation these metrics required to be
analyzed. Certainly, here are a few more aspects of Nike's methodology and
business practices:

Product Portfolio Strategy: Nike strategically manages a diverse product

portfolio, catering to various sports and lifestyle categories. This includes
running, basketball, soccer, training, and casual wear. The company constantly
assesses market trends to ensure its product offerings align with consumer
demands.

Supply Chain Management: Nike has a complex global supply chain that
involves manufacturing facilities in various countries. The company focuses on
efficient supply chain management to ensure timely production, minimize costs,
and maintain quality control. This is particularly important in the fast-paced and
competitive sportswear industry.

Consumer Engagement: Nike actively engages with consumers through various

channels, including social media, events, and community programs. The
company seeks to create a community around its brand, encouraging customer
loyalty and repeat business.

Digital Membership Programs: Nike has introduced digital membership

programs like NikePlus, which offers personalized content, early access to
products, and other benefits. This strategy aims to enhance customer loyalty and
gather valuable data for personalized marketing.

Retail Strategy: Nike operates a mix of company-owned stores, partner retailers,

and e-commerce platforms. The company's retail strategy includes creating
flagship stores in key locations, offering exclusive products, and providing an
immersive brand experience in-store.

Adaptation to Trends: Nike is known for its ability to adapt to cultural and
fashion trends. The company stays attuned to evolving consumer preferences,
allowing it to release products that resonate with current styles and aesthetics.

Partnerships and Collaborations: Nike frequently collaborates with other

brands, designers, and entities outside the traditional sportswear industry. These
collaborations often result in limited-edition releases that generate buzz and
appeal to a broader audience.

Corporate Culture: Nike places importance on its corporate culture,

emphasizing innovation, creativity, and a commitment to athletes and consumers.
The company's internal culture contributes to its external brand image and
influences decision-making processes.Remember that business strategies can
evolve, and it's essential to refer to the latest information, official reports, and
announcements from Nike for the most accurate and current understanding of the
company's methodology.Certainly, here are a few more aspects of Nike's
methodology and business practices:

In-House Design and Development: Nike invests significantly in in-house

design and development teams. This allows the company to maintain tight control
over the creative process, ensuring that its products reflect the latest trends,
performance needs, and innovations.

Consumer Feedback Integration: Nike actively seeks and integrates feedback

from consumers into its product development process. Through various channels,
including social media, customer reviews, and surveys, the company gathers
insights that inform future product designs and improvements.
E-commerce and Digital Marketing: Nike has embraced the digital landscape,
emphasizing e-commerce sales and leveraging digital marketing strategies. The
company utilizes online platforms not only for selling products but also for
creating engaging content, building communities, and enhancing the overall
brand experience.

Nike App: The Nike app serves as a central hub for customer interactions. It
provides personalized content, product recommendations, and access to exclusive
releases. The app also integrates with other Nike services, contributing to a
seamless and connected experience for users.

Data Analytics: Nike utilizes data analytics to understand consumer behavior,

preferences, and market trends. This data-driven approach helps the company
make informed decisions regarding product development, marketing strategies,
and inventory management.

Athlete-Driven Insights: Nike collaborates closely with athletes to gain insights

into performance needs and preferences. This partnership not only contributes to
the creation of high-performance products but also enhances the authenticity of
Nike's connection to the world of sports.

Continuous Improvement: Nike embraces a philosophy of continuous

improvement. This applies not only to product innovation but also to operational
efficiency, sustainability practices, and social responsibility initiatives. The
company is committed to evolving and staying relevant in a dynamic market.

Global Events and Sponsorships: Nike sponsors and actively participates in

major global sporting events, such as the Olympics and World Cup. These
sponsorships not only contribute to brand visibility but also provide platforms for
launching new products and reinforcing Nike's association with elite athletic
performance.
It's important to note that Nike's methodology is multifaceted and continually
evolves to meet changing market dynamics and consumer expectations. Staying
updated with the company's official communications and industry analyses will
provide the most accurate insights into Nike's current business practices.

There are many ways to accomplish financial analysis: -

 Horizontal analysis
 Vertical analysis
 Ratio analysis

Horizontal analysis
Horizontal analysis can be achieved by working on the three metrics in the
previous section but consider the history of these metrics for the last five years

Horizontal analysis using Income statement:By taking the income statement for
the last five years then compute the horizontal percent of change for each item in
the income statement using the following equation: -
Income statement horizontal analysis [5] The overall status is 126% than the
same period in the previous year.

Horizontal analysis using cash flow:

The same by taking the cash flow statement for the last five years based on
account statement then compute the horizontal percent of change for each item in
the cash flow statement using the following equation: -Change %= ((Current Year
Value – Previous Year Value) / Previous Year Value) *100

Table 5 Cash flow horizontal analysis for last five years [8]

horizontal analysis with before the yearThe final cash and equivalents show that
there 18% increase that proves enhancement in cash flow.

Vertical analysis

In vertical analysis will use the balance sheet statement and take each item in
assets then divide it on overall assets value to see comparing this with the previous
year also do the same with liabilities as well to evaluate the performance [2].

In the below table the vertical analysis has been done by dividing each asset
amount on total assets for the last six years based on the Nike balance sheet at 31-
5 of each year.
Table 6 Nike balance sheet at 31-5-2020 and 31-5-2021 Asset Vertical Analysis

As there is an increase in assets from 21,396 M$ in 2016 to reach 37,342 M$ in

2021 but for vertical distribution, there are fluctuations that mean the company
has the same schema of distributing items from the total value of assets.
Figure 3 assets vertical analysis

In figure 1 notice that current asset is increased and non-current assets decreased
indicating that Nike power to convert assets to liquidity increased.

As well do the same liabilities in the below table the vertical analysis has been
done by dividing each liability amount on total liabilities for the last two years
based on Nike balance sheet at 31-5-2020 and 31-5-2021.

Table 7 Vertical liabilities analysis

Figure 4Vertical liabilities analysis Figure 2 shows that shareholder equity is

increased in 2021 on the other hand non-current liability decreased. Indicating
again that Nike's power to convert assets to liquidity increased.

Ratio analysis

As per [2] key ratios can be divided into five sections “Profitability, sustainability
ratio, operational efficiency ratio, leverage ratio (funding- Debt, equity, Grants),
another ratio”. The key ratios are listed in the coming section and will define to
bel calculated based on the three financial statements represented in this study
(income statement, balance sheet, and cash flow)

Gross Profit Ratio

The ratio is used to measure the portability of the company and can be calculated
by dividing Net profit (Revenue – the cost of goods sold) over the total revenue.

When this ratio increased it reflect the good situation for the company by
generating more profit and if decreased it reflect the bad situation for the company
by generating less profit.

By apply Net profit margin equation on last two years, we can find as below
Debt to Equity Ration

This ratio is used to measure the ability of the company to meet its short-term
obligations for external creditors using the owner equity rather than touching the
company assets, the ratio can be calculated by dividing the total shareholder’s
equity on the total liabilities

When this ratio increased it reflect a good situation for the company by making
the owner equity cover more portion of creditors liabilities.By applying the Debt
to equity ratio equation on last two years, we can find as below
Figure 5 Dept to Equity [9]

Current ratio

The ratio is used to measure the ability of the company to meet its short-term
obligations for external creditors using the company's current assets, the ratio can
be calculated by dividing the current assets divided by current liabilities.
When this ratio increased it reflect the good situation for the company by having
assets convertible to cash with one year to cover the creditor's liabilities in a short
term.By applying the Current ratio equation on the last two years, we can find as
belowNike Inc.’s current ratio improved from 2019 to 2020 and from 2020 to
2021.In 2020 each dollar in liability is covered by 2.48 cents from current
assets.In 2021 each dollar in liability is covered by 2.72 cents from current
assets.This ratio enhanced in 2021 indicate that the company owns more assets to
fulfill short-term liability.
Figure 6 Current Ration [10]

Working capital turnover ratio

The ratio is used to measure the ability of the company is utilizing its working
capital to increase its sales. It can be calculated using the following equation

When this ratio increased it reflects that the company utilized the capital
efficiently and turn over many times during the same year to generate more profit.
By applying the Working capital turnover ratio equation on last six years we can
find as below

Quick ratio
The ratio is used to measure the ability of the company to meet its short-term
obligations for external creditors using the company's quick assets (current assets
– Inventory cost), the ratio can be calculated by dividing the quick assets divided
by current liabilities.

When this ratio increased it reflect the good situation for the company by having
quick assets to cover creditors' liabilities in a short term.By applying the Quick
ratio equation on last six years we can find as below

Return on Equity

The ratio is to measure the Net Income over the Share Holder Equity. The
equation to calculate is
When this ratio increased it reflect that income returned on invested equity is
increased which gives a positive impression for investors in the stock market.By
apply Return on Equity equation on last six years, we can find as below

Efficient Market Hypothesis For Nike

Hypothesis: Nike's Continued Embrace of Sustainability Will Drive Long-Term

Growth and Market Leadership

Rationale:

1. Consumer Demand Shift: There has been a significant shift in consumer

preferences towards sustainable and eco-friendly products. This trend is
expected to continue as consumers become more environmentally
conscious and socially responsible. Nike's proactive approach to
sustainability, including initiatives like using recycled materials and
reducing carbon emissions, aligns well with this trend.
2. Brand Loyalty and Reputation: Nike's commitment to sustainability
enhances its brand image and fosters customer loyalty. Consumers are
more likely to support and advocate for brands that prioritize
environmental and social responsibility. This positive reputation can
translate into increased sales and market share for Nike over the long
term.
 3. Cost Savings and Efficiency: Embracing sustainable practices often
leads to cost savings and operational efficiencies. By reducing waste,
energy consumption, and reliance on finite resources, Nike can lower its
production costs and improve its bottom line. Additionally, innovations in
sustainable materials and manufacturing processes can drive further
efficiencies and competitive advantages.
4. Regulatory Pressures and Industry Standards: Governments around
the world are implementing stricter regulations and standards regarding
environmental sustainability. Companies like Nike that proactively adopt
sustainable practices are better positioned to comply with these
regulations, reducing the risk of fines or penalties. Moreover, adhering to
industry standards for sustainability can enhance Nike's competitiveness
and access to markets.
5. Investor and Stakeholder Expectations: Investors and other

stakeholders are increasingly considering environmental, social, and

governance (ESG) factors when making investment decisions. Companies
with strong sustainability practices are more attractive to socially
responsible investors and may enjoy lower financing costs and higher
valuations. By prioritizing sustainability, Nike can enhance its appeal to
investors and stakeholders, thereby strengthening its financial position .

Recommendations

The financial analysis Nike show that the company did very well and most of the
statement represents that company has a strong position in liquidity and
profitability however the ratio analysis that quick ratio is increased from 1.59 to
be 2.01 while the standard value for this indicator is 1.
The value 2.01 for this indicator means that there is equity not utilized maybe this
lies under risk management but I recommend decreasing this indicator to increase
the operating capital and finally increase profitability. As of my last knowledge
update in January 2022, I don't have the ability to provide real-time stock market
data or make specific financial recommendations. Investment decisions should be
based on thorough research and analysis of current market conditions. If you are
considering an investment in Nike or any other stock, here are some general tips:

Research the Company: Understand Nike's current financial health, recent

performance, and future growth prospects. Look into factors like revenue trends,
profit margins, and market share.

Industry Analysis: Consider the overall trends in the athletic apparel and
footwear industry. Analyze how Nike compares to its competitors and how the
industry as a whole is expected to perform.

Global Economic Conditions: Economic factors, both global and regional, can
impact consumer spending on discretionary items such as sportswear. Consider
the economic conditions and how they might influence Nike's business.

Innovation and Product Pipeline: Nike's success often comes from its ability to
innovate. Research the company's recent product releases, technological
advancements, and any upcoming launches that may impact its market position.

Social and Environmental Responsibility: Assess Nike's efforts in corporate

social responsibility and sustainability. Increasingly, investors consider a
company's ethical practices and environmental impact in their investment
decisions.
Dividends and Financial Stability: If you are looking for income from your
investment, consider whether Nike pays dividends. Additionally, evaluate the
company's financial stability and debt levels.

Market Sentiment: Analyze market sentiment, news, and analyst reports to

gauge how the investment community views Nike's stock.

Diversification: If you're building a diversified portfolio, consider how Nike fits

into your overall investment strategy. Diversification can help manage risk. It's
crucial to consult with a financial advisor or conduct thorough research before
making any investment decisions. Additionally, note that market conditions can
change, so it's advisable to check the latest information and consult with financial
professionals for the most up-to-date advice.

METHODOLOGY

Nike’s original goal was to provide professional athletes with specialized products and
clothing that would help them improve their performance. Due to its success, Nike has
entered the international market as a manufacturer of apparel and accessories for the amateur
segment. The company’s global recognition is one of its strengths. The swoosh symbol and
the legendary trademark already speak for the brand and its outstanding image and reputation.
Moreover, Nike’s client base comprehends millions of loyal customers around the world. The
responsiveness and feedback from them allow the company to adjust and offer desirable
products. The production, operated in developing countries with lower manufacturing costs,
reduces prices in order that products are affordable and inexpensive. Hence, branding image,
audience, and pricing strategies are the main strengths of the company.

Despite the abovementioned advantages, there are some weaknesses, which put Nike in a
vulnerable position The low cost of manufacture implies cheap labor, leading to the
conclusion that Nike’s working conditions are poor. However, a considerable share of its
products is purchased via retailers. Therefore, Nike is dependent on suppliers, which possess
the power of manipulating prices and quality of goods. Furthermore, the company is heavily
reliant on the U.S. market despite worldwide fame and awareness. An economic breakdown
in the country may lead to financial collapse, reducing Nike’s sales and growth. Thereupon,
inadequate terms of employment, dependence on the American market, and connection with
third-party producers problematize the brand’s perspective.

Both rivals possess a set of strengths and weaknesses, which benefit or disadvantage Nike in
the market. Puma and Adidas employ substantial Research and Development (R&D) sector,
allowing the companies to innovate their product lines. Moreover, the diversification of
goods and services allows them to cover a large segment of customers, thus, increasing
growth rates and revenue figures. Nevertheless, Puma and Adidas face tough competition in
the sports footwear and apparel market, struggling with big players akin to Nike. In addition,
the companies’ limited line production with celebrity endorsements and premium prices
narrow the potential customer base. Thereby, the competitors’ R&D branch is rife with
novelties, while a diverse product range boosts sales. Nonetheless, the rivalry level and top
charges are the deficiencies.

Marketing Strategies

The marketing mix consists of four major components: product line, pricing policies,
distribution channels, and communication methods. The product element refers to goods and
services provided by a business (Thabit & Raewf, 2018). Nike’s merchandise line is
comprised of athlete shoes, clothing, and various equipment. The brand focuses on the quality
and availability of choice for customers. The most popular product remains to be footwear for
all sports enthusiasts. Nike grows and competes by providing special lines, which include a
particular set of appliances and apparel for different types of sport. For example, tennis or
fencing shoes with lighter weight and durability give athletes an advantage in their fights.
Moreover, the brand is flexible in keeping pace with ever-changing and evolving
technologies by offering goods with connection to smartphones to assess performance. The
introduction of such novelties affects marketing strategies by concentrating on celebrity
endorsement and active visual presentations. Thus, the product component involves accent on
shoes and persistent innovation and modification of the existing goods.

The next element of the retailer mix is a place. It can be defined as a “series of co-dependent
companies” trying to provide a product or service (Kotler & Armstrong, 2010, as cited in
Othman et. al., 2019, p. 868). Nike’s distribution channels include online and physical stores
together with E-commerce platforms and retailers’ activities. The latter one accounts for the
most significant amount of sales, thus, having a presence on a global scale. In order to
minimize transportation and manufacturing costs, Nike’s production units are situated in the
countries of business operations. Such a tactic increases overall efficiency and maximizes
profit levels. Amazon, eBay, and Flipcart are the main trading websites where goods are sold
electronically. The portals give access to Internet users and attract them by the fast and easy
method of shopping. Lastly, there are exclusive Nike physical shops located in selected
regions with a targeted audience. Therefore, the place factor consists of the four delivery
channels, by which consumers are able to reach out to the brand.

The price is a subsequent element to be examined in Nike’s marketing mix. Price may be
described as a “value” granted to a good or service (Antonella, 2017, p. 637). The dominant
status in the market stems from its pricing strategies, which are based on customer value. The
tactic implies a client’s willingness to pay for a product so as to maximize profits and sales.
Consequently, the obtained figure is used to set a price. The research of the market plays a
crucial role in determining major charging tactics considering Nike’s sensitivity to prices.
The strategy builds strong relationships with consumers and facilitates further loyalty to the
brand. Thus, Nike products can be purchased by people of all income levels. Hence, control
over prices and careful attention to the customer base and its financial capabilities put Nike in
a leadership position.

REFERENCE

1. About Nike – The official corporate website for NIKE, Inc. and its affiliated brands
2016. m About Nike – The official corporate website for NIKE, Inc. and its affiliated
brands. [ONLINE] Available at:. help-en-
us.nike.com/app/answers/detail/a_id/113/…/nike-mission-statement. [Accessed 03
August 2016]

The Nike website is a very reliable source when finding facts and information about Nike.
This site provided me with their mission statement which allows viewers to make sense of
what Nike is about. The Nike website is helpful in developing a new Nike website as I am
able to refer to it when looking for inspiration as well as looking for things to do differently

2. Aligica, P, D, 2006. Institutional and Stakeholder Mapping: Frameworks for Policy

Analysis and Institutional Change. Public Organization Review: A Global Journal, vol. 6,
issue 1, pp 79-90.

This journal article was helpful for general understanding of concepts. Having read multiple
different authors theories helped form an opinion of the possible communication proceedings
that went on in Nike in 2013.

3. BSR. 2011. Stakeholder Engagement . [ONLINE] Available at: http://gsvc.org/wp-

content/uploads/2014/11/Stakeholders-Identification-and-Mapping.pdf. [Accessed 5
September].

This source provided in depth and step by step information on how to map stakeholders. It
was very useful in identifying stakeholders, analysing them based on their perspectives and
interests, mapping them using visualise relationships based to objectives and stakeholders and
finally, ranking them based on the issue and how relevant the are.

4. Business Insider Australia. 2016. 11 Things Hardly Anyone Knows About Nike| Business
Insider. [ONLINE] Available at: http://www.businessinsider.com.au/history-of-nike-facts-
about-its-50th-anniversary-2014-11?r=US&IR=T. [Accessed 03 August 2016].

Business Insider is a reliable source as it is well known and trusted in Australia. This source
provided some interesting facts about Nike’s history and their values to include in the home
page of the website. It also talks about the development of the Nike name and logo. Putting
this information on the home page is a good way of displaying Nikes values which in turn
will give viewers an idea of their corporate culture and what is important to them.

5. Business Insider Australia. 2016. Nike is facing unprecedented headwinds | Business

Insider. [ONLINE] Available at: http://www.businessinsider.com.au/nike-is-facing-
problems-2016-6. [Accessed 09 September 2016].

This article provided information on recent issues that Nike is facing. It gives statistics and
analysis of the organisations current position in the market, and what is causing these
unprecedented issues. It also explores competitors market positions which allowed me to
compare to Nike which assisted in my understanding of their point of difference.

6. Chief marketer. 2016. Nike Uses Content Marketing Videos for Internal Communications –
Chief marketer. [ONLINE] Available at: http://www.chiefmarketer.com/nike-uses-
content-marketing-videos-internal-communications/. [Accessed 09 September 2016].

This website provided examples of Nike internal and external communications that allowed
me to further explore their strategy. It helped me understand the different types of
communication activities organisations, in particular Nike, can develop to communicate their
key messages to relevant stakeholders.

7. Econsultancy. 2016. How Nike uses Facebook, Twitter, Pinterest and Google+ |
Econsultancy. [ONLINE] Available at: https://econsultancy.com/blog/62412-how-nike-uses-
facebook-twitter-pinterest-and-google/. [Accessed 09 September 2016].

This article was very useful in determining Nikes social media platforms and strategies. It
briefly described how the organisation uses them and why. This helped gain an understanding
of the way they use each platform, who they are targeting through them and the content they
use.

8. Goldman, Papson, R, S, 1988. Nike Culture: The Sign of the Swoosh. 1st ed. London: Sage
Publications Inc..

This book discusses the visual power of television ads, using Nike as an example. This book
provided me with some background information on Nike as well as communication strategies
they use to communicate their core business to stakeholders.

9. How Nike’s marketing strategies helped it become a global brand . 2016. How Nike’s
marketing strategies helped it become a global brand . [ONLINE] Available
at:http://www.businesstoday.in/magazine/lbs-case-study/nike-marketing-strategies-global-
brand/story/207237.html. [Accessed 09 September 2016].

This magazine article also assists in determining Nikes key communication strategies as it
provided a view on the success of Nike and the strategies that got them there. Marketing was
a large focus of this article, which is a core part of the reason Nike is who they are today.
10. Marsh Risk Management Research Report Discusses Lessons Learned from Bangladesh
Factory Collapse. 2013. Entertainment Close – Up,.

This reference provided me with some understanding of the lessons learnt from the collapsing
of the factory in Bangladesh. It explained the extend of effect it has on stakeholders, in
particular the supply chain.

11. Nike, Inc. – Corporate Responsibility Communications Update | UN Global Compact.

2016. Nike, Inc. – Corporate Responsibility Communications Update | UN Global Compact.
[ONLINE] Available at:https://www.unglobalcompact.org/participation/report/cop/create-
and-submit/detail/2977. [Accessed 08 September 2016]

This Corporate Responsibility Communications Update provided detailed information about

Nikes stakeholder engagement strategies. Links to the Nike webpage and report where
available to gain greater understanding of the way Nike communicates internally and
externally. The site also talks about the organisation support for the Global Reporting
Initiative.

12. NIKE COMPANY. 2016. Stakeholder Engagement & Reporting – NIKE COMPANY.
[ONLINE] Available at:https://nikecompanyblog.wordpress.com/stakeholder-engagement-
reporting/. [Accessed 08 September 2016].

The Nike Company Blog explores in detail. the organisations Stakeholder Engagement and
Reporting strategy. It discusses the corporate responsibility journey and the level of
engagement with a broad range of stakeholders.

13. Panmore Institute. 2016. Nike’s Promotion – Marketing Communications Mix – Panmore
Institute. [ONLINE] Available at: http://panmore.com/nike-marketing-communications-mix.
[Accessed 09 September 2016].

This article explores the way Nike used the marketing mix (7 P’s) to connect and engage with
consumers. It briefly touches on the promotional and advertising strategies that Nike goes
through to best communicate their core business. This has assisted in the process of analysing
Nikes core business and stakeholder engagement.
14. Ravi Vii, 2016.How Nike Makes Money? Understanding Nike Business Model Core
Elements – Revnues & Profits. [ONLINE] Avilable at: http://revenuesandprofits.com/how-
nike-makes-money-understanding-nike-business-model/. [Accessed 04 August 2016)

Conclusion

The study constructs the financial statements of Nike in addition to constructing

three types of analysis horizontal, vertical, and ratio analysis. these metrics show
the company doing well by enhancing financial performance indictor for the
current year over the previous year. As of my last knowledge update in January
2022, I can provide a general overview of Nike, but please note that specific
details may have changed since then.

Nike, Inc. is a multinational corporation known for its athletic footwear, apparel,
equipment, and accessories. The company has been a dominant force in the sports
and athletic wear industry for several decades. Nike's success can be attributed to
various factors, including its strong brand image, innovative product design,
effective marketing strategies, and sponsorship of high-profile athletes and sports
teams.

In conclusion, Nike has played a significant role in shaping the athletic apparel
and footwear industry, continually adapting to market trends and consumer
preferences. The company's commitment to innovation, performance, and style
has contributed to its global success and widespread popularity. Keep in mind
that the business landscape is dynamic, so it's advisable to check the latest sources
for the most up-to-date information on Nike and its current standing in the market.

Brand Image and Marketing: Nike is renowned for its powerful brand image
and iconic "Swoosh" logo. The company has been successful in creating a strong
emotional connection with consumers through effective marketing campaigns,
often featuring high-profile athletes and cultural influencers.

Innovation: Nike has a history of innovation in product design and technology.

The introduction of technologies like Air Max cushioning, Flyknit, and React
foam has helped the company stay at the forefront of athletic footwear
technology.

Global Reach: Nike operates globally,with a strong presence in various

countries. The company has successfully adapted its marketing strategies to
diverse cultures while maintaining a consistent global brand identity.

Retail Strategy: Nike has a multi-channel distribution strategy that includes

company-owned stores, online sales, and partnerships with various retail outlets.
The direct-to-consumer approach, including e-commerce and Nike's own retail
stores, has become increasingly important for the company.

Sustainability Initiatives: Nike has made efforts to address environmental and

social issues in its supply chain. The company has implemented sustainability
initiatives, including the use of eco-friendly materials, reducing carbon
emissions, and promoting fair labor practices.

Competition: Nike faces competition from other major sportswear brands like
Adidas, Puma, Under Armour, and others. The industry is dynamic, with
companies vying for market share through product innovation, marketing, and
athlete endorsements.
Digital Transformation: Like many companies, Nike has embraced digital
transformation. Its digital platforms, including its website and apps, play a crucial
role in engaging with consumers, offering personalized experiences, and driving
online sales.It's essential to check the latest sources for the most recent
developments, financial performance, and any new strategies or initiatives that
Nike may have undertaken since my last update in January 2022.

Athlete Endorsements: Nike has a long history of collaborating with top athletes
across various sports. These partnerships not only contribute to the brand's image
but also serve as a platform for showcasing innovative products. Endorsements
include athletes like Michael Jordan, LeBron James, Cristiano Ronaldo, and
many others.

Nike's Jordan Brand: The Jordan Brand, a subsidiary of Nike, is particularly

noteworthy. It originated from a partnership with basketball legend Michael
Jordan and has grown into a highly successful and culturally influential line of
athletic footwear, apparel, and accessories.

Collaborations and Limited Editions: Nike frequently collaborates with

fashion designers, celebrities, and other brands to create limited-edition and
exclusive releases. These collaborations often generate significant buzz and
contribute to the brand's status as a cultural icon.

Community Engagement: Nike engages with communities through various

initiatives, including youth sports programs and initiatives aimed at promoting
physical activity. The company has been involved in promoting social causes,
including diversity and inclusion.

Financial Performance: Nike is a publicly traded company, and its financial

performance is closely watched by investors. The company's revenue, profit
margins, and growth trends are important indicators of its success in the market.
Challenges and Controversies: Like any major corporation, Nike has faced
challenges and controversies. These include issues related to labor practices in its
supply chain, criticism for the treatment of sponsored athletes, and responses to
cultural and social issues.

Adaptation to Market Trends: The sports and fashion industries are subject to
changing trends. Nike's ability to adapt to shifts in consumer preferences,
technological advancements, and emerging market trends is crucial for
maintaining its competitive edge. Remember to check the latest news and reports
for the most current information on Nike, as developments in the business world
can occur rapidly.

Technology and Digital Innovation: Nike has invested heavily in digital

innovation, including smart technologies integrated into its products. For
example, the Nike Adapt series features self-lacing technology controlled through
a smartphone app, showcasing the company's commitment to merging technology
with sportswear.

Nike's Role in Popular Culture: Nike has become a symbol in popular culture,
transcending its status as a sportswear brand. The company's products are often
featured in movies, music videos, and other forms of entertainment, further
solidifying its presence in mainstream culture.

Corporate Responsibility: Nike has made efforts to address social and

environmental issues through its corporate responsibility initiatives. This
includes commitments to reducing its environmental impact, improving labor
conditions in it supply chain, and supporting community development programs.

NIKE, Inc. Portfolio: In addition to the Nike brand itself, the company owns
several other brands, including Converse and Hurley. Each brand caters to
different consumer segments and contributes to the overall diversity of Nike's
product offerings.

E-Sports and Gaming Partnerships: Nike has explored partnerships with e-

sports organizations and gaming-related initiatives. The company recognizes the
growing influence of gaming culture and has collaborated with professional
gamers and gaming teams.

Women's and Athleisure Markets: Nike has actively expanded its focus on the
women's athletic and athleisure markets. This includes developing products
specifically designed for women and engaging in marketing campaigns that
promote inclusivity and empowerment.

Response to COVID-19: Like many businesses, Nike has faced challenges

related to the COVID-19 pandemic. The closure of retail stores and disruptions
to the supply chain prompted the company to adapt its strategies, with a
heightened focus on e-commerce and digital engagement. As always, for the most
up-to-date information on Nike, including its latest initiatives, partnerships, and
financial performance, it is recommended to check the company's official
communications and recent news sources.